Seroja Investments said Thursday that its vessel under joint venture company Seroja Zhushui 5 Shipping Limited was served with an arrest warrant by Conirma Marine S.A. (CMSA) on Tesday (21 Oct).

Seroja Zhushui had entered into a memorandum of agreement (MOA) for the sale of its panamax vessel, Zhushui 5, to CMSA on 25 July this year. But CMSA did not take delivery as obliged under the terms of the MOA and further alleged that the vessel had deficiencies deemed unfit for delivery, Seroja Investments said in a statement to the Singapore Exchange.

Seroja Zhushui asked for a surveyor from Lloyd's Register to inspect the vessel and was issued a clean report by the surveyor which is contrary to the allegations by CMSA that the vessel is unfit for delivery, the company said.

Seroja Zhushui is currently seeking legal advice and intends to take steps to void the arrest warrant and defend any claims that CMSA may subsequently file.

Seroja Investments added it wishes to advise that the arrest warrant is not expected to have a material impact on the financial position of the company and its subsidiaries for the current financial year ending 31 December 2014.